HARP Questions

[bmccarron]

Hello all!

My loan was switched over about a year ago to Nationstar from CitiMortgage. It is owned by Fannie Mae and my current LTV is about 110% (Loan for 186,000 house worth about 170,000). My loan was originally for 185,000 and a 30 year (100% finance bought house in Feb 08) but due to some unseen hardships and the miscalculation of my escrow account, my payment jumped and I was unable to afford the payments but was able to secure a mod with Citi, which lowered my payment but extended me to 40 years. Nationstar sent me a letter telling me I may be able to requalify for HARP and refinance through them. I ran through the process with them but they said my debt to income ratio was a bit too high and the were unable to do it. Got my hopes up, so I am looking now again to do this and get back to 30 years and lower my rate. I am currently paying 6.25% I have a few questions.

Am I able to find a lender who will work with this for me? My credit is great just a bit of a high debt load.

Am I able to get cash out of any of these? I can manage my debt load, but would sleep much easier at night if I could pay down about 10,000 in credit card debt. It would leave me some more money at the end of the month so I am not scraping the bottom of the barrel and might actually be able to save some money. While I know this isnt im sure the goal of the HARP, If it is possible I would certainly like to be able to utilize it.

One of my biggest expenses in my mortgage is my PMI. Honestly if they were to drop this, i wouldnt even need a refi. I know I should have thought of that before I bought, but I was just trying to buy a home for my family :-( We do not plan to move at all, we love it here. If I could just lower my bills my life would be a whole lot easier....Is there hope?

[TomEason]

bmcacarron

Thanks for your post. I empathize with your situation but I don't have any answers for you.

However, I can recommend you visit this thread for help in seeing if you qualify for a loan mod. Find out Now If you even QUALIFY for a Loan Workout Solution. Post Your Situation

[Cat Damiano]

HI bmccarron,


For a HARP refinance you would be able to use your mortgage lender, or any lender approved to do business with Fannie Mae or Freddie Mac, and ask for a Home Affordable Refinance application. Unfortunately if your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP. Also, the Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts. Was the modification that you received from Citi a HAMP modification?

[bmccarron]

Thanks Tom. Cat, I think so...It was back when mods were first happening, so im not sure if it was a hamp...I think i started working the process back in December of 08 and successfully got the mod in March or April of 09 if that helps...

[bmccarron]

Oh, also, my lender turned me down...If I look at other lenders, if they are listed on freddie mac's site can they work mine since it was a fannie mae? Where is a good place to find local lenders willing to help, I am in the Charlotte,NC area. Thank you for all your help and clarifying the cash out question as well.

[TomEason]

bmcarron

Thanks for your update. Again I encourage you to visit this site and post your numbers. Those guys are very helpful and experienced. Find out Now If you even QUALIFY for a Loan Workout Solution. Post Your Situation

[Cat Damiano]

Fannie Mae doesn't provide a list of specific lenders that offer their products. Since the HARP refinance is a Fannie/Freddie product, most of the large lenders that service these loans offer it but the criteria for qualifying would remain consistent from one to the other. If you were unable to get the approval through NationStar for the backend debt ratio, unfortunately the result may be the same elsewhere.

Is the modified payment that you received including principal, interest, taxes, insurance, and HOA if applicable, at 31 percent of your current gross income?

[bmccarron]

Cat it's very close. I took toms advice and posted my info in the other thread. I only ask this because the guy at Nationstar told me that I may want to try somewhere else. It's good to know that Fannie/Freddie are all about the same. I have a few local lenders that I see deal with Freddie refis so maybe I will bring my info to them and see if they can work something else.

[Cat Damiano]

You may also want to contact Charlie directly in addition to putting your figures in the other thread, so he can go over your figures and options directly with you over the phone.

Charlie Rose
President
1-877-737-8440 x103